The act of investing in tax liens has become a promising asset to portfolios across the country ever since the real estate market dropped in 2008. As a result of the economic downturn, the strain Americans have faced led to many delinquent taxpayers looking to find money in the equity of their homes and property.
The great thing about tax lien investing is the consistent returns that come back to the investor. Since tax lien certificates are sold off and distributed by the government, they are virtually guaranteed to see a double digit rate of return on a yearly basis. Some investors find rates in the 12-15% range, and some can be even higher. Determining which ones are prone to deliver the highest returns is what savvy investors are trying to do.
For help in that department, Absolute Wealth has released “Double Guaranteed Returns: How to Earn Safe 14% Returns Like Clockwork,” a Special Report full of real world information to help any level investor learn the skills required for successful tax lien investing.
The credit crunch has caused severe financial problems across the economic landscape, and even investors with the money available are failing to find ways to ensure it turns a profit for them. Traditional stocks and bonds have lost their certainty, and real estate in general has plummeted into such low numbers that the majority of property purchased has been distressed homes, or homes in some stage of foreclosure.
Real estate tax lien investing has given individuals a chance to serve as the lender and the broker, with the ability to gain Wall Street-level returns without having to run the risk of never seeing their finances again. Since tax liens are typically purchased with direct hard money (personal finances of one investor instead of an institution), there are certain implications to consider.
Those implications are covered in the “Double Guaranteed Returns” report; if there’s one thing investors should do when they are using their own private money, it’s their homework. The report lists the assessments and assurances investors should collect before attempting a tax lien purchase. That way, investments are covered as closely as possible.
Since tax delinquents aren’t able to find larger institutions to borrow from, they’re resorting to individual lienholders. As long as things check out, a tax lien investment can be the most secure way to guarantee returns as the gap left by stiffened banks is filled.
But there’s reason to move fast, as the Internal Revenue Service has recently made efforts to change lien regulations and make it easier for struggling taxpayers to recover from their losses.
Those changes, highlighted here in a February, 2011 press release from the IRS, are meant to lessen the negative economic impact felt by U.S. taxpayers, but might mean less opportunity for tax lien investing.
As of the publication of this 2008 USA Today article, the IRS was placing liens on properties at a 600,000 per year rate, totaling more than one million outstanding federal tax liens tied to real and personal property. Those numbers could only have continued to grow in the following three years, leading to the decision by the IRS to abate the problem.
Now that the process is going to be changed and likely make it more difficult to locate and buy a tax lien, investors will have to know exactly what to look for and exactly what to avoid when considering a tax lien purchase.
They can find that information in Absolute Wealth’s “Double Guaranteed Returns” report, and start bringing in the 14% returns they’ve always hoped for. When it comes to investing in tax liens, knowledge is the strongest power, so get a copy of the report now and share it with colleagues at http://absolutewealth.com/reports/double-guaranteed-returns/.